Pune Stock Exchange (PSE) was a regional stock exchange located in Pune, Maharashtra, India. It was established in 1982 and was recognised under the Securities Contracts (Regulation) Act, 1956. [1] [2]
The Pune Stock Exchange was formally recognized by the Ministry of Finance in 1982. It was set up to cater to the capital market requirements of western Maharashtra, particularly for small and medium enterprises (SMEs) in Pune and nearby districts seeking access to equity markets. [1] [2]
In April 2003, the Securities and Exchange Board of India (SEBI) superseded the Board of Directors of the Pune Stock Exchange due to governance-related lapses. An administrator was appointed to manage its affairs. [3] In August 2005, SEBI approved the corporatisation and demutualisation scheme for PSE. The exchange was required to convert into a company limited by shares and to separate ownership from trading rights. [4]
By mid-2000s, the PSE had grown to around 185 trading members and listed over 300 companies. These included firms from Pune, Satara, Sangli, Solapur, Kolhapur, Ahmednagar, Aurangabad, Nashik, and Mumbai. [2]
The exchange initially operated on a traditional open outcry system and later transitioned to an electronic trading platform. Despite these changes, PSE found it difficult to compete with national-level exchanges such as the NSE and the BSE. [5]
In line with SEBI regulations requiring stock exchanges to maintain a minimum net worth and achieve certain trading volumes, PSE applied for a voluntary exit. SEBI approved the application on 13 April 2015, officially derecognising the exchange and directing it to refrain from using the term "stock exchange" in its name. [6]
PSE contributed to the development of regional capital markets in Maharashtra. Its exit was part of SEBI’s broader effort to consolidate regional exchanges and improve the efficiency and transparency of capital markets in India. [5] [6]